Banking sector profitability fell by €165 million, or 13.9%, to €1 billion in 2025, down from €1.2 billion in 2024, according to figures released on Tuesday by the Central Bank.
The decline is attributed mainly to a reduction in net interest income (NII). Net interest income dropped to €1.56 billion in 2025, compared with €2 billion in 2024.
The Central Bank of Cyprus published updated aggregated data on the Cypriot banking sector – covering profitability, balance sheet figures and capital adequacy – with reference date 31 December 2025.
Total banking sector assets rose by €4.4 billion, or 6.6%, reaching €70 billion in 2025 compared with €65.6 billion in December 2024. This increase reflects mainly higher volumes of loans and advances as well as debt securities.
The sector’s Common Equity Tier 1 (CET1) ratio improved by 1.1 percentage points, reaching 25.8% at the end of 2025, up from 24.7% at the end of 2024. The rise is attributed chiefly to an increase in CET1 capital and a reduction in total risk‑weighted exposures.
The Central Bank also announced on Tuesday its decision to maintain the countercyclical capital buffer (CCyB) at 1.5%, with effect from 14 January 2026.
